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How to choose a credit card for everyday spending

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Key takeaways

  • Credit cards for everyday spending reward consumers for every purchase they make, and they often come with no annual fee.

  • To ‘get ahead’ with rewards on everyday spending and bills, it’s crucial to pay your credit card bill in full each month so you can avoid interest charges.

  • Some of the top credit cards for everyday purchases include the Wells Fargo Active Cash® Card, Blue Cash Preferred® Card from American Express, Discover it® Cash Back and Chase Freedom Flex℠*.

What credit card do you use for your day-to-day purchases? Whether you’ve thought about it or not, you probably have an everyday spending card — that is, a card you automatically reach for every time you complete an in-store checkout or make an online purchase. Tools like digital wallets make this process even easier by allowing you to select a single credit card as your default card. In any case, your everyday card should come with rewards that make its everyday use pay off over time.

But, how do you choose the best everyday card for maximizing the rewards you earn? Read on to discover a short list of the best credit cards for daily use. We’ve also included some tips for picking an everyday card and getting the most out of your rewards by combining an everyday spending card with a specialized credit card.

How to choose a credit card for daily spending

Selecting the best credit card for day-to-day use comes down to a matter of your spending habits and personal preferences. With a variety of cards to choose from, you are sure to find a card that meets your personal goals and needs.

Consider the following tips to find the ideal card for everyday spending and bills:

  • Look for cards with bonus rewards in your top spending categories. If you spend a lot of money each month on groceries or dining, cards that offer bonus rewards at restaurants or groceries may be a good choice for daily use. Earning a higher percentage of cash back on these purchases could help you earn hundreds of dollars more in cash back every year.

  • Consider cards with rotating bonus categories. If you’re hoping to maximize your cash back earnings and your spending is more varied, a card that offers bonus cash back in rotating categories may be the best credit card for daily use. These rotating bonus categories often earn up to 5 percent cash back on things like streaming services, gas stations and drug store purchases.

  • Compare flat-rate rewards cards, too. A flat-rate cash back card can also be a great tool for everyday spending, especially if you are concerned about simplicity. These cards offer an easy to understand flat cash back rate on all purchases. With a card like this, you can earn a solid level of cash back on every purchase without worrying about any bonus categories.

  • Decide if you want travel rewards instead. On the other hand, if you love to travel a cash back card may not be the best fit for your everyday spending. Using a travel rewards credit card or airline credit card instead can help you earn points and miles you can redeem for flights, hotel stays and more. This type of card could be the key to significant savings on your upcoming trip.

Savvy shoppers who calculate that it only takes about $1,600 in grocery purchases to earn $95 in cash back rewards may find that their cash back rewards quickly outpace the card’s annual fee. How can you combine an everyday spending card with a specialized credit card? Everyday spending cards are beneficial when used on their own, but they can be even more advantageous when paired with a specialized spending card. For instance, if you have a flat-rate cash back card and an airline credit card, you can maximize your rewards by using the everyday spending card for most of your day-to-day purchases and the airline credit card for all travel-related expenses. This way, you can earn cash back and miles while taking advantage of the additional perks offered by the airline credit card, such as elite membership status, annual airline credits, and companion passes. When choosing a specialized credit card to pair with your everyday spending card, consider your budget’s primary spending category. Combining your everyday spending card with a store credit card, for example, can save you money when shopping at a specific retailer. Some people choose to combine their everyday spending card with a travel, airline, or hotel credit card to maximize rewards for both everyday and vacation spending. Understanding your spending habits and reward preferences will help you select the credit card combination that best suits your needs.

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